"I am delighted to have this opportunity to meet you all, a unique gathering of businessmen and businesswomen from the two of the fastest growing economies of the world, today. Businessmen throughout history have been promters and protectors of human civilization. The India-China Economic Trade and Investment Summit is a unique gathering of businesspersons representing as I said two most populous countries of the world. You have grown competitive by starting from continent - sized markets and graduating to world markets. Businesmen of India and China are the symbols of the growth stories of both our countries. Businessmen are the creators of wealth. I therefore, salute your dynamism and entrepreneurship. Your meeting today is an expression of your confidence in the potential for economic cooperation between our two great countries. It is equally a testimony to the progress that business communities from our two countries have made in working with each other. Much has been done, much has been achieved but I honestly believe the best is yet to come. India and China are today the fastest growing large economies in the world. We should remember that China, India and Europe had almost equal shares of world income in the early 18th century. As the 21st century unfolds, both India and China stand poised to regain their weight in the evolving global economy. Our two countries will need to work together to ensure that we contribute to, even as we benefit from, the economic resurgence and integration of Asia. Our two economies are becoming engines of economic growth and must use our natural and human resources, technology and capital for the common benefit of our region and indeed the world as a whole. The Indian economy has witnessed growth rates of close to 9% per year in the last three years. Our macro-economic fundamentals are strong. We have undertaken a series of economic reform measures to facilitate investment and growth. Our savings and investment rates have increased to 35% of our GDP and are rising. With a predominantly young population, there is potential for further increase in these rates. Although India is more integrated with the global economy than ever before, our growth has been largely fuelled by an expanding domestic market. All these factors give us confidence that we will be able to step up our annual growth rate to 10% within the next five years.

Our bilateral trade with China has doubled in the last two years. Our trade target of 20 billion US dollars by 2008 has been reached two years ahead of schedule. The revised target of 40 billion US dollars by 2010 is also likely to be achieved two years ahead of schedule. This makes me wonder whether our two Governments have been underestimating the capabilities of our respective industries and their strong urge to do business with each other. We therefore propose to set more ambitious targets.

In the area of trade, the challenge before us is to diversify our export basket to China. I would urge Indian business to vigorously pursue opportunities for expanding non-traditional items of export. Such efforts, when matched by greater market access for Indian goods in China, will help to bridge the rising trade deficit between us.

In addition to our competitive manufacturing industries, India has a diversified agricultural production base. Our food processing industry is also growing rapidly and we can supply quality agricultural and marine products to the Chinese market. A conducive environment should be created for this trade to expand.

The services sector accounts for more than 50% of India's GDP and more than 40% of China's GDP. India has had considerable success in positioning itself in hi-tech services in world markets. There are today enormous opportunities for both India and China to expand trade in services, particularly in construction and engineering, education, entertainment, financial services, IT and IT enabled services, transport, tourism, and health. We will work together with the Chinese government to remove administrative barriers and simplify regulatory regimes in order to move forward in all these areas.

Chinese companies have been actively engaged in the Indian market and I welcome that phenomenon. I understand that Chinese firms have contracted projects in India worth over 12 billion US dollars. Indian majors have set up a number of joint ventures or subsidiaries in China in the pharmaceuticals and software sectors, among others. This too I greatly welcome.

We must strengthen the base of our economic cooperation through business alliances and collaboration in technology transfer and development. We seek to promote bilateral investments in traditional sectors such as petrochemicals, steel, healthcare, IT and automobiles. Equally, our entrepreneurs should explore opportunities in new areas such as biotechnology, advanced materials, renewable energy and low carbon technologies.

I would therefore suggest a three-pronged strategy for the chambers of industry and commerce of both countries to achieve these goals and objectives. Firstly, you should jointly develop a strategic plan for the future so that both of us a vision of our economic cooperation and a road map for its implementation. This will ensure that a long-term strategic perspective that looks ahead to future challenges and opportunities guides our relationship and ourties.

Secondly, we should develop profitable business models that factor in our complementarities and competitive strengths and the special needs of large markets both in India and in China. The opportunities are many and innovation is the key word to exploiting them.

Lastly but equally importantly, you need to acquire insight into each other's markets, business customs and managerial styles. In the final analysis, doing business is about developing understanding and trust in your partners. Additionally, the business communities of our two countries should develop a deeper understanding of the macro-economic outlook, the regulatory regimes and of factors that have a bearing on the competitiveness of enterprises in both our countries.

I am very glad to know that the number of visitors exchanged between our two countries approached the half million mark last year and direct flight connections have risen to 22 a week. This is encouraging but not good enough. We need to encourage this growing interaction, including through easier grant of visas.

I would like to assure this distinguished gathering that both governments will work together to put in place an enabling environment for greater trade, investment and economic interaction between our two great countries. This has to include creating a level playing field by addressing such issues as non-tariff barriers, IPR protection and market-related exchange rates. All countries must compete in global markets and such competition is not inconsistent with co-operation nor is it adversarial. The industrialised countries constantly compete with each other and they see this competition as constructive and mutually beneficial.

Economic cooperation between India and China has become a principal driver of our strategic and cooperative partnership for peace and prosperity. Several bilateral understandings and agreements are already in place to address different sectoral aspects which impact on our economic cooperation. India and China working together should develop a habit of mutually advantageous cooperation.

In 2003, our two Governments had established a Joint Study Group to examine the potential for economic engagement. Pursuant to this, a Joint Task Force has finalized its report on the feasibility of a India-China Regional Trading Arrangement. During my visit, I look forward to discussing further steps in this regard with the leadership of China.

In conclusion, I would like to congratulate the dedicated and hard-working people of China for the rapid economic progress that they have made in the last thirty years, when the reform, opening up process was launched. I would also like to thank the China Council for the Promotion of International Trade for organizing this unique event, and making this partnership of the business communities of our two countries possible to give greater content and depth befitting our strategic and cooperative partnership for peace and prosperity and development."